Sakif Shamim, Managing Director, Labaid Cancer Hospital and Super Speciality Centre Deputy Managing Director, Labaid Group

The world today is navigating a complex, rapidly changing, and polarized geopolitical and economic structure. At this critical juncture in 2025, the global supply chain is no longer just a matter of efficiency; it has become a pillar of national security, strategic control, and economic resilience. Increasing trade, technological, and military competition is redefining the flow of international commerce. Within this immense landscape, Bangladesh, as an emerging economic marvel of Asia, warrants a highly crucial and multi-dimensional analysis of its position. Our geographical advantages, pace of economic growth, and prudent diplomatic maneuvers will determine our future in this new global context.
The global supply chain in 2025 is not limited to the simple 'China-Plus-One' strategy anymore. It has now moved into new concepts like 'Friend-Shoring' and 'Diversification for Resilience'. Western nations are currently looking for partners who can not only supply goods at low production costs but also adhere to their values, especially Environmental, Social, and Governance (ESG) standards. In this scenario, Bangladesh enjoys a unique advantage. The revolutionary progress our readymade garment sector has made in compliance, workplace safety, and the construction of green factories over the past years has greatly strengthened our image as a ‘credible alternative’ to global buyers. Recent reports from the International Labour Organization (ILO) and UNICEF point to our positive efforts in child labor eradication, a very important consideration for Western markets. However, the challenge isn't confined to garments; it’s essential to ensure this compliance in high-value and technology-dependent sectors as well. Specifically, by maintaining transparency and global standards in the light engineering, pharmaceuticals, and IT-Enabled Services (ITES) sectors, we can become a larger partner in the global supply chain. To make this transformation successful, it is necessary to swiftly invest in the use of advanced technologies, like blockchain-based supply chains, which will further increase buyer confidence.
Geopolitically, Bangladesh, due to its strategic location on the Bay of Bengal, is situated at the center of the geopolitical rivalry between the two major superpowers in the Indo-Pacific region: China and India. The Bay of Bengal is a lifeline for global trade, and Western powers, especially the US, Japan, and the European Union, are increasing their economic and strategic presence to ensure a 'free and open Indo-Pacific'. The most important thing for us is to maintain an independent, neutral, and balanced foreign policy. China's Belt and Road Initiative (BRI) is enhancing our physical infrastructure, particularly port capacity, which is essential for overcoming our logistical weaknesses. On the other hand, Western countries are offering investment proposals centered on agendas like good governance, democracy, and human rights, which are vital for securing our export markets. Not becoming overly dependent on any single power or bloc, and assessing every relationship based on the standard of national economic interest, will bring us great benefit. For instance, by ensuring multinational partnerships in projects like the Matarbari deep-sea port, we can become a neutral center for regional connectivity. Establishing ourselves as this 'Connectivity Hub' will exponentially increase our diplomatic bargaining power as a smaller economy.
While graduating from the Least Developed Country (LDC) list in 2026 is an honor for Bangladesh, it brings significant structural challenges to our economy. Firstly, upon LDC graduation, we will lose duty-free benefits (GSP), which could result in an additional tariff of 6% to 14% on our main export products, severely reducing our competitive capacity in the international market. To deal with this, the government must rapidly enhance its ability to negotiate Preferential Trade Agreements (PTA) and Free Trade Agreements (FTA) with the European Union, the UK, and other major trade partners. Intensive training for Ministry of Commerce officials to gain expert skills in trade negotiations is imperative.
Secondly, the withdrawal of the waiver we enjoyed under the TRIPS Agreement (Agreement on Trade-Related Aspects of Intellectual Property Rights) will multiply the production costs of our pharmaceutical industry. This will especially impact the production of medicines for complex diseases like cancer. The government must engage in strong diplomatic efforts to retain some benefits through bilateral agreements, even outside the TRIPS framework. Economic diversification is the only solution to meet these challenges. According to forecasts by the IMF and ADB, to maintain GDP growth, we must attract foreign investment and increase domestic capacity in sectors like advanced technical textiles, agro-processing, medical devices, and IT. Ensuring an 'Ease of Doing Business' environment and a reliable supply of gas and electricity should now be a national priority for the rapid implementation of the approximately $1.85 billion in investment proposals that came in during the first eight months of 2025.
Thirdly, the core strength to face global challenges comes from a country's internal stability and institutional capacity. The economic indicators of 2025—especially high inflation, liquidity crisis, and the burden of defaulted loans—are creating serious pressure on the country's macroeconomy. To ensure sustainable growth, attention must be paid to ensure that steps like strict reforms in the banking sector, bringing transparency to the National Board of Revenue (NBR)'s revenue collection process, and increasing turnover tax do not put undue pressure on businesses. It is urgent to simplify the investment process and make it harassment-free by quickly implementing initiatives like the 'Bangladesh Single Window' system. An unwavering commitment to political stability and good governance will act as the most crucial catalyst for restoring the confidence of not only domestic entrepreneurs but also international investors. Through these collective efforts, Bangladesh will be able to not only secure but also solidify its position as a significant economic power on the world stage.